Practice Areas

U.S. to Initiate Negotiations on Insurance Agreement with EU

Wednesday, January 20, 2016

Sandler, Travis & Rosenberg Trade Report

The Treasury Department and the Office of the U.S. Trade Representative have announced their intent to initiate negotiations with the European Union on a written agreement regarding prudential measures with respect to the business of insurance or reinsurance. Negotiations will seek to address the following measures: (1) obtain equivalent treatment of the U.S. insurance regulatory system by the EU; (2) obtain recognition by the EU of the U.S. integrated state and federal insurance regulatory and oversight system, including with respect to group supervision; (3) facilitate the exchange of confidential regulatory information between lead supervisors across national borders; (4) afford nationally uniform treatment of EU-based reinsurers operating in the U.S., including with respect to collateral requirements; and (5) obtain permanent equivalent treatment for the solvency regime in the U.S. and applicable to insurance and reinsurance undertakings. In a Nov. 20, 2015, letter to Congress, the two agencies pointed out that the U.S. and the EU are the two largest insurance markets in the world and that the proposed agreement would level the regulatory playing field for U.S.-based insurers and reinsurers operating in the EU.